ATO Interpretative Decision

ATO ID 2001/454

Goods and Services Tax

GST and taxable supply of goods & services
FOI status: may be released

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CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a supplier of goods and services, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies those goods and services in the course of its enterprise?

Decision

Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies goods and services in the course of its enterprise.

Facts

The entity is a supplier of goods and services. The entity is supplying those goods and services in return for consideration, and the supply is in the course or furtherance of its enterprise. The supply is taking place in Australia and the entity is registered for goods and services tax (GST).

The supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act.

Reasons for Decision

Section 9-5 of the GST Act provides that an entity is making a taxable supply where:

•
the entity makes the supply for consideration; and
•
the supply is made in the course or furtherance of an enterprise carried on by the entity; and
•
the supply is connected with Australia; and
•
the entity is registered or required to be registered for GST; and
•
the supply is neither GST-free nor input taxed.

The entity is registered for GST and the supply satisfies all of the other positive limbs of section 9-5 of the GST Act. Furthermore, as the supply is neither GST-free nor input taxed, it is not excluded by the negative limb of section 9-5 of the GST Act.

Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies its goods and services.

Date of decision:  21 September 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   Division 40

Related ATO Interpretative Decisions
ATO ID 2001/276

Keywords
Goods & services tax
GST supplies & acquisitions
Taxable supply

Business Line:  GST

Date of publication:  11 October 2001

ISSN: 1445-2782

history
  Date: Version:
You are here 21 September 2001 Original statement
  13 September 2005 Archived

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